The grade of Russian oil ESPO is being sold at the largest discounts this year, as demand for it has noticeably decreased under the influence of US sanctions against the companies Rosneft and Lukoil. The latest sale was made by an independent Chinese refinery, which purchased the oil at a discount of $7 to $8 per barrel. This is the first such deal since the end of October, indicating changes in the demand structure for ESPO oil among Chinese consumers.
This is reported by Business • Media
Chinese Refineries and New Markets for Russian Oil
The high yield of diesel fuel and the short transportation distance made ESPO oil attractive for Chinese refineries. However, in 2025, amid stricter international sanctions, interest in this grade has significantly declined, forcing Russian exporters to lower prices to maintain sales volumes.
Negotiations with Sri Lanka and Proposals from Estonia
Sri Lanka is actively negotiating with the Russian Federation to ensure uninterrupted oil supplies. In addition, the country’s state oil corporation is discussing the possibility of importing liquefied natural gas and modernizing the local refinery to expand the use of Russian energy resources. Despite the lack of signed agreements, the negotiation process continues.
At the same time, Estonia has offered Hungary to avoid punitive sanctions on the condition that Prime Minister Viktor Orban abandons long-term energy contracts with Russia. Estonian President Alar Karis emphasized that separate agreements between Hungary and Moscow could remain in effect until the 2040s, and their retention supports energy dependence on the aggressor country and contradicts European unity in countering Russian aggression.
“Hungary must abandon these contracts with the Russian Federation, as they support energy dependence on the aggressor country and contradict European unity in countering Russian aggression.”